China's Guangzhou Shipyard International (GSI) is being tipped to take control of sister company Guangzhou Longxue Shipbuilding.

Both shipbuilders are under the umbrella of China State Shipbuilding Corporation.

Well-placed sources say some of the top management from GSI are now reporting for work at Longxue, whose president, Yu Bao-Jia, has been replaced by GSI president Han Guang-De.

“There is a lot of talk in the market that Longxue will be merging with GSI but we have not heard any official announcement,” said an executive at Longxue.

“GSI is a listed company and matters like this will need to be announced publicly,” he added.